George Parker writes sceptically this morning that Gordon Brown is now “billing himself as the high priest of anti-recessionary deficit spending”.
At yesterday’s press conference the PM had the nerve to hint that the Chinese were following his lead….although “Mr Brown’s team stopped short of suggesting any cause and effect inherent in the phone call”.
In fact numerous economies have already carried out tax cuts or public spending increases.
China announced a $585bn programme of investment on infrastructure and social welfare – and reform of VAT – on Sunday. Japan unveiled a $50bn stimulus package of tax cuts and pay-outs on October 30. Germany came up with its own fiscal stimulus measures, worth $16bn, on November 5. The Spanish have introduced measures in April, August and again November. The US went for a $170bn economic stimulus plan in February, including tax breaks for business and the posting of $300 cheques to 100m people.
Gordon Brown can only point to the £2.7bn handout for low-income workers in the summer and the temporary stamp duty holiday. We are still waiting for the PBR.
Get alerts on Gordon Brown when a new story is published